Essay about Competitive Analysis - Tide Pods

1495 Words Mar 2nd, 2013 6 Pages
Allison Scanlon
Michael Carter
Marketing 3700 13 March 2013
Competitive Analysis
Introduction

Proctor and Gamble has spent nearly a decade developing Tide Pods, and thus far, it appears that their work has paid off. Tide Pods have claimed a 68% market share in the new laundry pods category, which now accounts for 7.3% of the total multibillion dollar laundry industry (Monk, Tide Pods successful enough to boost P&G's earnings). Tide Pods are unit-dose liquid packets that are twice as compacted as liquid detergent. They contain three different chambers and products: a liquid detergent, stain remover, and brightening agent. Tide Pods unique chemistry and packaging add a little magic to a despised chore.
Existing Competition
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Unilever, a giant corporation who owns laundry brands Comfort and Surf, has yet to come out with a laundry capsule. This could indicate that they are spending a lot of time and millions of dollars to create a product that is as innovative and superior as Tide Pods. Many of Proctor and Gamble’s competitors released a product very quickly to compete with Tide Pods, but their products definitely had some issues. Phoenix Brands, who owns laundry giants Ajax and Fab, has yet to enter the laundry pod market. This should also be a concern for Proctor & Gamble. Proctor and Gamble has low barriers to entry in terms of competitors because the laundry market is a 7 billion dollar industry, and there are so many different brands that could develop their own laundry capsule ( (Monk, Procter & Gamble Washing Out Rivals with Tide Pods).
Competitive Advantage

Although Proctor and Gamble has many competitors to face, Tide Pods have developed a strong competitive advantage over other laundry products. It could have actually been advantageous for Proctor and Gamble to delay the launch of Tide Pods, because it made their competitors jump the gun and put inferior products on the shelves. Proctor and Gamble spent $150 million dollars and over a decade developing Tide Pods, which has proven to be very beneficial (Neff). A study that Proctor and

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